Retiring

[stevewool]

Don’t know if you know this but I am about to retire this coming Friday 29th March and after all the false starts ‘it’s going to happen’ , not like brexit.

Anyway after lots of reading on this forum it seems a few try and start new adventures in The Philippines and they seem to have a income coming in once they have first put lots of cash into there projects, yes there have been some who have lost a bob or two too.

So are there many who just go from day to day enjoying all that is thrown at them and not worrying about there investments if there is any and are just living of there savings and maybe there pension and living well, I know we are all different in what we may need to live on cash wise.

Myself I feel I have enough to last but only if I am not silly in investments and the fear of losing some of it , if you have a property and low bills and you are well in your health what else is there.

[Viking]

56 minutes ago, stevewool said:

Don’t know if you know this but I am about to retire this coming Friday 29th March and after all the false starts ‘it’s going to happen’ , not like brexit.

Anyway after lots of reading on this forum it seems a few try and start new adventures in The Philippines and they seem to have a income coming in once they have first put lots of cash into there projects, yes there have been some who have lost a bob or two too.

So are there many who just go from day to day enjoying all that is thrown at them and not worrying about there investments if there is any and are just living of there savings and maybe there pension and living well, I know we are all different in what we may need to live on cash wise.

Myself I feel I have enough to last but only if I am not silly in investments and the fear of losing some of it , if you have a property and low bills and you are well in your health what else is there.

Good luck with your retirement, wish I also had just one week to go

I have also been thinking about all the cash some people invest in different kind of businesses in Philippines. Its often a high risk involved and me personally would prefer to just use that money for my own well-being. But I guess some people need something "important" to do to keep them happy. We are all different and we must choose what is right for yourself.

I am constantly trying to find a way to quit my job and move as soon as possible, biggest question is, how much cash is enough???? 

[stevewool]

45 minutes ago, Viking said:

 

biggest question is, how much cash is enough???? 

That’s the million dollar question ,or in my case the few hundred thousand question.

[JJReyes]

4 hours ago, stevewool said:

So are there many who just go from day to day enjoying all that is thrown at them and not worrying about there investments if there is any and are just living of there savings and maybe there pension and living well, I know we are all different in what we may need to live on cash wise.

I spent two years planning retirement and so far, the first five years have been splendid.  Preparations include working on actuarial tables to make sure there was sufficient retirement income plus reserves.  One item I did not anticipate is the true rate of inflation.  It is actually quite high in the United States which is the reason we will have to stay longer periods in low cost of living overseas destinations.  

 

[Rayj]

Not worrying is the key. It’s hard to do. No one knows what the future may bring. If your gut tells you you have enough then all that’s left is to pull the trigger and see what happens. I did it on  7/20/2018. I had one overriding reason. My wife’s daughter has come to live with us and she brought her own daughter, ( my wife’s granddaughter). The granddaughter was starting kindergarten, and I purported the reason ( to my bosses so I wouldn’t poison my working relationships )  that I needed to be available in case of emergency so I was retiring ( quitting is how I choose to think of it ). So I retired 1 year before full retirement age ( and began drawing SS ) But I’ve gained a virtual lifetime of experience. I’m finally learning things that My Filipino wife of 14 years ( we are living in the states ) has been trying to teaching me about patience and all sorts of other niceties.  I liken my plunge into retirement as jumping into a boat and hanging on through the rocking.  Side note, my wife and I are currently visiting her family and this trip I’m better prepared than before and this is about my 10th trip. I get a great deal of satisfaction in detaching from the media circus that has become modern life in America.

[boyee]

3 hours ago, stevewool said:

4 hours ago, Viking said:

 

biggest question is, how much cash is enough???? 

That’s the million dollar question ,or in my case the few hundred thousand question.

If I only had a peso for every time I've asked this question.  It seems that every one has a different answer though.  I think I could live like a Filipino or close to it, I'm Chinese so being frugal comes easy.  My Filipina wife on the other hand...not a chance! She is way too westernized and would require a lot more money for retirement than I.  I think it depends on how much money you have saved up right now.  Assuming you will be living off your savings and not a renewable monthly income like a pension.  If working another few years allows you to save a lot more money then perhaps that would be wise.  However many gents don't have a high savings rate and an extra few years would not add much to the bucket.  If that's the case, as it is with most Americans, and you feel you have just enough than pull the trigger.  Accept a life of frugality and enjoy the simple things.  I use the 4% rule.  If you had a million bucks saved and put it in the market you could live off the interest of 4% which is $40,000 per year before taxes.  Or another way to calculate it is to figure out how much you need per month.  Lets say $,2,000.  Multiply that number by 25.  That's $50,000.  Multiply that number by 12 (12 months per year) and it comes to $600,00.  That's you FI number.  So if you need $2,000 per month you will have to have saved $600,000.  This is conservative and should not draw down your principle and account for inflation.  So as you get older and closer to that golden staircase in the sky you can start to spend more and draw down your nest egg.  

[JJReyes]

80% of your annual income during your last three years of employment(average). The assumption is less expenses because the children are grown-up and financially independent. Your 30 years mortgage is assumed to have been paid off by this time. You are now 65 years old and qualified to receive Medicare after 40 quarters of contributions. The two problems in making projections are "rate of inflation" and "life expectancy."

[hk blues]

You can approach it from two different perspectives - make your income fit your lifestyle or vice versa.  The great unknown is how long are you going  to be around.  Inflation and interest rates impact of course, but tend to remain within a narrow range so can be reasonably estimated, unlike your lifespan.  Boyee's numbers look pretty close to me but again, what lifestyle differences are involved.  As an example, I am 54 but I have a 6 year-old kid so my financial needs are very different from most 54 year olds!  

The magic number is - as much as you can gather!  

Edited March 23, 2019 by hk blues

[boyee]

4 hours ago, JJReyes said:

80% of your annual income during your last three years of employment(average). The assumption is less expenses because the children are grown-up and financially independent. Your 30 years mortgage is assumed to have been paid off by this time. You are now 65 years old and qualified to receive Medicare after 40 quarters of contributions. The two problems in making projections are "rate of inflation" and "life expectancy."

This would be a very good gauge if you remain in the same area that you worked in.  80% makes sense because the cost of living does not change.  But I thought moving to the Philippines changes that cost of living i.e. you wouldn't need to save the same amount?  

[Arizona Kid]

14 hours ago, stevewool said:

Don’t know if you know this but I am about to retire this coming Friday 29th March and after all the false starts ‘it’s going to happen’ , not like brexit.

Anyway after lots of reading on this forum it seems a few try and start new adventures in The Philippines and they seem to have a income coming in once they have first put lots of cash into there projects, yes there have been some who have lost a bob or two too.

So are there many who just go from day to day enjoying all that is thrown at them and not worrying about there investments if there is any and are just living of there savings and maybe there pension and living well, I know we are all different in what we may need to live on cash wise.

Myself I feel I have enough to last but only if I am not silly in investments and the fear of losing some of it , if you have a property and low bills and you are well in your health what else is there.

I think I know what you mean. I retired to the Phills to get out of the rat race. Not to join another rat race in a country where I know nothing about how to generate more income.